Wealthy foreigners flock to Cape Town

Wealthy international buyers are investing in Cape Town property at record levels, particularly in high-demand areas like the Atlantic Seaboard and City Bowl.

This is according to the Seeff Property Group, which stated that the sales boom correlates strongly with City of Cape Town reports of a record-breaking summer tourism season.

Propstats data shows that sales worth almost R2.462 billion were concluded in the first five months of this year, the highest in the last five years. The total value for the whole of 2024 was R3.4 billion, and it was similar to that of the prior year, 2023.

Sales to international buyers reached a record R600 million in February, and R700 million in April across the whole city.

Sales across the Atlantic Seaboard and City Bowl generated more than two-thirds (67%) of the total value.

Ross Levin, licensee for Seeff Atlantic Seaboard, said sales activity has been up quite notably this year. For the Atlantic Seaboard alone, sales to international buyers amount to about R530 million for April.

Overall, there were sales in just about all of the suburbs. The highest values recorded were in Camps Bay and Bantry Bay, and the highest volumes in Sea Point, at 27, and the CBD, at 32.

Buyers from more than 40 countries invested in property across the Cape this year. The highest volume is attributable to buyers from Germany, followed by the UK, Netherlands, Switzerland, and other European countries.

There has also been a notable uptick in sales to American buyers, who have predominantly purchased in Sea Point, Bantry Bay, Mouille Point, and the City Bowl. Buyers from other African countries have also made a return.

These include 12 countries: Angola, Cameroon, the Congo, eSwatini, Gabon, Ghana, Mauritius, Mozambique, Namibia, Nigeria, Tanzania, and Zambia. Nigeria was the stand-out in terms of the volume of sales.

Cape Town’s hotspots attract wealthy foreign buyers

Levin said the whole market across the Atlantic Seaboard and City Bowl has been very active, and there is a shortage of stock. This means that there are currently good opportunities for sellers.

Notable recent Seeff sales to foreign buyers include two sales to German buyers at R21 million in Camps Bay and R29 million at the Waterfront, as well as a R29.5 million sale at the Waterfront to a buyer from eSwatini.

He noted that other areas where international buyers have been active include Constantia and Bishopscourt in the Southern Suburbs.

False Bay areas, such as Muizenberg and Fish Hoek, and Southern Peninsula suburbs, such as Kommetjie and Scarborough, Hout Bay, and Blouberg, are also areas of interest.

Notably, Seeff recently concluded a record sale of a R16.5 million property in Sunset Beach to a buyer from the United States.

Hout Bay has seen robust demand from international buyers, with as many as 37 sales to buyers from various countries.

In particular, buyers from Germany, the Netherlands, the United Kingdom, Denmark, and other European and the United States are investing in Cape Town.

According to Stephan Cross, manager for Seeff Hout Bay and Llandudno, the buyers spent between R5 million and R25 million.

Cross said that the Hout Bay market has been particularly hot this year, with high sales activity and a shortage of stock, which provides good opportunities for sellers.

Propstats shows that total sales across the entire Hout Bay market already exceed R600 million this year, following a record R1.3 billion in 2022, notably higher than in 2023 and similar to the 2022 Covid-19 Boom sales levels.

Levin said that Cape Town is lovely to international buyers, including those from the African continent, for its Mediterranean climate, cosmopolitan lifestyle, and access to good amenities.

International buyers often spend more per capita, investing further in renovations, lifestyle upgrades, and supporting local businesses.

Levin explained that these factors not only boost property sales but also contribute to a significant injection of foreign income into the local economy.